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OST-99-6558

Delta Air Lines, Inc.

Delta plans to operate the U.S. -South Africa services that are the subject of this application pursuant to a codeshare arrangement with South African Airways . Delta is replacing American Airlines, Inc. as SAA's chosen codeshare partner. The proposed codeshare services are fully consistent with the U.S.-South Africa bilateral agreement, and the Department has already determined that such services are in the public interest.

Delta and SAA plan to begin these services on or about January 31, 2000. In order to ensure a smooth commercial transition and avoid an unnecessary reduction in U.S.-South Africa online service options, it is vital that this application be approved as soon as possible. Accordingly, Delta respectfully requests that this exemption application be granted on or before December 3, 1999

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060, robert.cohn@shawpittman.com

Delta Air Lines, Inc. and South African Airways

On November 15, 1999, American and British Airways submitted a joint application for statements of authorization and related exemptions to engage in reciprocal codeshare services including, inter alia, services between the U.S. and Johannesburg and Capetown, South Africa, via London (OST-99-6507). On December 3, 1999, American applied for a U.S.-South Africa third-country codeshare designation (OST-99-6595). And on December 1, 1999, Continental Airlines, Inc. applied for a U.S.-South Africa third-country codeshare designation for proposed codeshare services with Alitalia via Milan (OST-99-6587) . Delta should not be permitted to codeshare with South African Airways and to hold one of the four third-country codeshare designations as well. American therefore opposes the Delta/South African Airways applications unless Delta surrenders its third-country designation with Air France (Order 99-1-5). Requiring Delta to do so will maximize competition in the U.S.-South Africa market. In addition to the Delta/South African Airways arrangement, competitive services will then be offered by American/British Airways, Continental/Alitalia, United/Lufthansa, and Northwest/KLM. Accordingly, the Department should not approve the Delta/South African Airways applications, unless Delta cedes its third-country codeshare designation with Air France in the U.S.-South Africa market.

Annex I to the 1996 U.S.-South Africa Air Transport Agreement provides that the U.S. may designate, as of November 1, 1999, a total of four U.S. carriers to serve South Africa under codeshare arrangements with carriers of third countries. Three of these four designations have been assigned. See Order 99-1-5, January 4, 1999 (Delta/Air France via Paris); Order 9710-14, October 12, 1997 (United/Lufthansa via Frankfurt and Northwest/KLM via Amsterdam).

Counsel: American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com

Delta Air Lines, Inc. and South African Airways

Neither Continental nor American disputes the fact that the proposed codeshare arrangement between Delta and South African Airways is consistent with the U.S.-South Africa bilateral and is otherwise in the public interest. Rather, American and Continental contend that Delta should not be permitted to offer these authorized services unless Delta "surrenders" its third-country codeshare designation to serve South Africa in conjunction with Air France. That designation was duly awarded to Delta by the Department in Order 99-1-5, and Delta is currently fully utilizing the designation in accordance with its certificate terms and conditions. There is no lawful basis to revoke Delta's third-country codeshare authority as a precondition to the approval of this application.

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202-663-8060

The answers essentially address one and the same question: which flag carriers should the Department authorize to operate the four designations for third-country codeshare service available under the U.S.-South Africa Bilateral Agreement. That issue simply is not relevant to this proceeding, and the Department should not delay its approval of SAA'S applications while it considers the separate issue of U.S. carrier third-country code-share designations.  Continental and American do not dispute that the authority for which SAY has applied is in all respects consistent with the terms of the South Africa Bilateral Agreement. SAY has been appropriately designated and authorized by the Government of the Republic of South Africa to provide the services in question, and, for its part, the Department repeatedly has found SAY to be qualified to operate services to and from the United States. In short, the Department has an obligation under the U.S.-South Africa Bilateral Agreement to act on BAA'S applications without delay.

Counsel:  Zuckert Scoutt, Frank Costello, 202.298.8660

Delta Air Lines, Inc.

Scheduled foreign air transportation of persons, property and mail between Atlanta and New York, on the one hand, and Cape Town, Johannesburg, Durban, Port Elizabeth, East London, and George, South Africa, on the other, and to integrate this authority with its existing exemption and certificate authority. Delta intends to offer this service pursuant to a code-share arrangement with South African Airways (SAA) whereby SAA will display Delta's designator code on flights operated by SAA between Atlanta and New York, on the one hand, and Cape Town and Johannesburg, on the other, and on flights within South Africa that connect to these services.

By:  Paul Gretch

Delta Air Lines, Inc.

Hereby applies for renewal of an exemption authorizing Delta to provide scheduled foreign air transportation of persons, property, and mail between Atlanta, Georgia, and New York, New York, on the one hand, and the following points in South Africa, on the other hand: Cape Town, Johannesburg, Durban, Port Elizabeth, East London and George. Delta further requests renewal of route integration authority to permit Delta to continue to combine the services authorized by this exemption with Delta's services authorized by other certificates and exemptions, to the extent permitted by applicable international agreements.

Pursuant to such route integration authority, Delta provides codeshare service between Ft. Lauderdale and South Africa.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060, robert.cohn@shawpittman.com

Delta Air Lines, Inc.

Scheduled foreign air transportation of persons, property and mail between Atlanta, Georgia, and New York, New York, on the one hand, and the following points in South Africa, on the other hand: Cape Town, Johannesburg, Durban, Port Elizabeth, East London, and George. Delta provides service to these points on a code-share basis with South African Airways. Delta also requests renewal of its authority to combine the services authorized by this exemption with other services authorized by Delta's existing certificates and exemptions, to the extent permitted by international agreements.

By:  Paul Gretch

OST-98-3736 - US-Hare, Zimbabwe
OST-99-6558 - Atlanta/NY-South Africa Codeshare w/ South African
OST-99-6559 - Sub-Saharan Points Codeshare w/ South Africa
OST-01-10493 - US-Brazzaville, Congo - Exemption

July 28, 2003

Application for Renewal of Exemptions

The docket numbers, most recent approval and expiration dates, and authorized routes of the exemptions with respect to which Delta herein seeks renewal are identified in Exhibit A. Pursuant to these exemptions, Delta provides direct, beyond-gateway and third-country codeshare service between the United States and numerous points in Africa in conjunction with codeshare partner South African Airways (Pty) Limited and SkyTeam alliance partner Societe Air France. Delta reserves the right to serve these routes with other codeshare partners in the future, subject to the Department's approval of any necessary statements of authorization.

Counsel: Delta and Shaw Pittman, Robert Cohn, 202-663-8060

OST-99-6558

Filed July 28, 2003 | Issued December 23, 2003

Notice of Action Taken

Scheduled foreign air transportation of persons, property and mail between Atlanta, Georgia, and New York, New York, on the one hand, and the following points in South Africa, on the other hand: Cape Town, Johannesburg, Durban, Port Elizabeth, East London, and George, and to integrate these services with its existing certificate and exemption authority. Delta provides service to these points on a code‑share basis with South African Airways.

By: Paul Gretch

OST-98-3736 - US-Hare, Zimbabwe
OST-99-6558 - Atlanta/NY-South Africa Codeshare w/ South African
OST-99-6559 - Sub-Saharan Points Codeshare w/ South Africa

October 21, 2005

Application for Renewal of Exemptions

Hereby applies under 49 U.S.C. § 40109 for renewal of Delta's exemption authorities to engage in scheduled foreign air transportation of persons, property, and mail between the United States and the African points identified in Exhibit A, and to combine services operated under these exemptions with all other Delta services authorized by its existing certificates and exemptions, to the extent permitted by applicable international agreements.

Delta provides direct, beyond-gateway and third-country codeshare service between the United States and numerous points in Africa in conjunction with codeshare partner South African Airways. Delta reserves the right to serve these routes with other codeshare partners in the future, subject to the Department's approval of any necessary statements of authorization.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com

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